Another Iamgold
project in Africa
– Mupani in
Botswana
 
Toronto, Canada — MININGREVIEW.COM — 11 March 2009 – Iamgold Corporation has entered into an underwriting agreement with a syndicate of underwriters led by Canaccord Capital Corporation and TD Securities Incorporated to sell 34.3 million of its common shares at a price of C$8.75 per common share to raise gross proceeds of C$300.125 million (R2.5 billion).

A press release issued here confirmed that the net proceeds from the offering were expected to be used mainly to fund the construction and development of the company’s Essakane project in Burkina Faso. This would be replacing all or substantially all of the previously proposed Essakane project debt facility and related gold hedging requirements. The balance would be used to fund capital expenditures at Iamgold’s other properties, and for general corporate purposes, including future acquisition opportunities.

The release added that the offering was scheduled to close on or about 26 March 2009, and was subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange and the New York Stock Exchange.

It went on to point out that a registration statement relating to the common shares of Iamgold had been filed with the United States Securities and Exchange Commission, but had not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.